MediaTek and Spreadtrum Communications are expected to grab a combined more than 80% of the total chip orders for new handsets set to roll out in emerging markets during 2015, according to industry sources in China.
Smartphone sales in emerging markets are set to exhibit significant growth in 2015. In emerging markets, telecom operators tend to adopt a low-cost marketing strategy, the sources observed. Therefore, chipmakers able to provide lower quotes are being pinpointed as beneficiaries of the smartphone sales boom in emerging markets, the sources said.
MediaTek and Spreadtrum will obtain the majority of chip orders for new smartphones set to roll out in emerging markets in 2015, the sources indicated.
In the market for low- to mid-range smartphones, companies usually select chip solutions from MediaTek and Spreadtrum for profit reasons, the sources observed.
In terms of price-performance ratio, using chip solutions from MediaTek and Spreadtrum also helps smartphone vendors develop more competitive products for the low- to mid-range market segment, the sources said.
MediaTek has already expanded its market presence in India, Russia, Eastern Europe and South America, in addition to China, while Spreadtrum with its more flexible prices has attracted orders from Southeast Asia, the sources noted.
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